There are numerous financial technologies or fintech businesses to monitor and invest in. Payment stocks have outpaced the S&P 500, which is down by almost 18%. Several fintech industries are falling by 24%. In addition, Crypto stocks have been beaten due to the FTX bankruptcy. Fintech stocks have been under pressure from market fundamentals like industry-increasing interest rates. Fears of a U.S. economic crisis are growing, prompting inquiries into which payment shares are best placed to endure a downturn. But the potential to capitalize on short-term trends can only be gained if the direction is correct. A few helpful suggestions are to enhance your short-term outlook with regular 2X leverage, go where the opportunities are, utilize both bull and bear funds, and maintain flexibility (liquidity for trading in volatile markets).
In the past decade, low-interest rates have benefited the FinTech industry tremendously. The sudden reversal in Fed policy, which has increased interest rates by about 400 basis points in only five months, with another 75-100 basis points anticipated in the upcoming two quarters, will significantly impact the FinTech sector. However, not all industries and business strategies within those industries will be affected in the same way or to the same extent. The two objectives are to:
Provide a framework for analyzing how rising rates and a struggling economy will affect the FinTech sector so that you can conduct your own assessment and strategize about the effects on your portfolio holdings.
Discuss how we anticipate rates will harm or benefit specific business lines across various FinTech sectors.
This reply was modified 10 months ago by Alvin Adam.